Chicago | Reuters – U.S. cattle futures tumbled on Monday, extending a steep slide after President Donald Trump complained last week that prices were too high.
Traders said they were increasingly expecting that Trump’s administration will encourage more imports of beef and cattle in a bid to offset tight U.S. supplies and bring down prices for consumers.
U.S. beef prices hit records this year as output declined and consumer demand remained strong. Production suffered after a years-long drought in the western U.S. burned up pasture lands used for grazing and raised feeding costs, forcing ranchers to reduce their cattle herds to the lowest levels in decades.
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“This market is pricing in the idea that all of the 2026 U.S. beef decline will be offset,” said Rich Nelson, chief strategist for brokerage Allendale.
Most-traded December live cattle closed at 227.175 cents a pound, down 6.750 cents. February live cattle settled at 224.000 cents per pound, down 9.425 cents.
Most-active January feeder contracts closed down 13.750 cents at 334.425 cents per pound. November contracts settled at 338.450 cents per pound, down 13.750 cents.
The exchange temporarily widened the markets’ daily trading limits last week after futures sank.
Last week, Trump urged cattle ranchers to lower prices, while infuriating them with a plan to quadruple the country’s low-tariff imports of Argentine beef. Ranchers said increased imports threaten their livelihoods and that Trump should support demand for U.S. products.
Traders said they thought Trump may next dial back tariffs on Brazilian goods, including beef, after a meeting on Sunday with Brazil’s President Luiz Inacio Lula da Silva. Trump imposed 50% tariffs on Brazilian products in August, slowing U.S. imports of beef from the world’s largest exporter.
“Early last week, we would have expected no removal of the tariffs against Brazilian products,” Nelson said. “Now that’s very possible.”
This week, Mexico’s agriculture minister is expected to travel to Washington with the aim of reaching an agreement on reopening the border to Mexican cattle. Since May, Washington has mostly blocked imports of Mexican cattle to keep out a fresh-eating parasite called New World screwworm, further tightening U.S. supplies.
Choice boxed beef ended the afternoon at $377.88 per cwt, up $2.12. Select boxed beef was valued at $361.66 per cwt, up $3.69, the USDA reported.
Lean hog futures closed slightly down. Most-traded December contracts closed at 81.500 cents a pound, down 0.400 cents. February futures settled at 83.400 cents a pound, down 0.900 cents.
The USDA put pork carcass cutout value at $101.08 per cwt, down $1.66.
-With files from Glacier FarmMedia
